Fintechs in South Korea See the Launch of a New Virtual Sandbox

Fintechs Companies in South Korea See the Launch of a New Virtual Sandbox

With a budding financial technology industry, South Korea is prime for fintech growth. In order to develop the fintech market within South Korea, the Financial Services Commission (or FSC), has made plans to launch a digital sandbox in which they may test future fintech products and services. This announcement also allows South Korea to test trial of new products, to enable customers to find new services and offerings.

As one of the specified top priorities for 2020, fintech has received the government of South Korea’s pledge of full support. They have not only shown their approval but created a budget of $16 million (USD) in order to cultivate growth. South Korea’s open banking system first launched back in the winter of 2019, which enabled fintech firms to access payment networks, as well as pay lower transaction fees, due to several open API initiatives.

New Opportunities for Fintech

Budgets and governmental support go a long way in nurturing projects still in the early stages. A sandbox environment would provide service and product support, and while also streamlining operations. Sandbox ecosystem isolation enables programs to be advised individually, apart from various other services. Because data is so important, it moulds how firms engage and operate with one another, as well as with their clientele.

The position of incumbent banks has moulded the fintech service adoption rates observed in South Korea. Recent reports have shown that nearly half of the South Korean population is vastly underserved, although they stand among the world’s top technologically advanced countries. Because their citizens take part in a digitally connected world, South Korea holds third place for the most broadband internet users within OECD countries. As a country, they are also a global leader in digital displays, electronics, mobile phones, and semiconductor devices. Each and every one of these factors proves South Korea is the prime environment for fintech service advertisement – while the COVID-19 pandemic only enriches the digital service industry.

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